Saving up can be challenging, irrespective of the income, because of rising inflation. Most people are trying to keep their heads above water on utility bills, groceries, and rent. So, squeezing out some cash for the rainy days is the last thought on their mind.
Fortunately, saving money doesn’t have to be a hassle because several tips can help you get a clearer idea on how to save $5000 in three months!
A Side Hustle
One of the most convenient ways of saving extra money is to increase your income. For this purpose, you can get a side hustle by working from home or taking up a part-time role. People with regular jobs can opt for overtime or launch a new online business. There are various online options that one can explore, including digital designing, teaching languages, creative writing, and customer service.
In simpler words, you can utilize your career skills or natural talents, turn them into services, and offer these services online. In addition, if you have your own car, you can take up the job of part-time grocery or food deliveries as it makes a decent amount of money.
Focus on the Interest Rates
If you are using credit cards, the interest rates are likely high. It’s needless to say that paying off debt is a long process and interest charges make it harder. According to research, the most common interest rate for credit cards is around 15.91%, and some are even higher. Your credit score will directly influence your credit card interest rates.
For this purpose, you can use online tools to search for better interest rates for credit cards or sign up for a personal loan to pay off your credit cards and bills. Also, do your research before applying for new credit cards because some companies always charge higher fees and interest.
Save Through Groceries
Homeowners tend to use around 50% of their income for groceries, so saving through groceries will help save money. For this purpose, you can use the coupon apps and weekly specials to save some bucks. In addition, purchasing food in bulk will help you get lower prices (you can buy in bulk from wholesalers rather than traditional stores).
Secondly, you can buy groceries from local grocery stores rather than big brand names. Stores such as Aldi and Walmart offer great discounts, making them more affordable, and since the quality is top-notch, they make reasonable options for grocery shopping. Lastly, always make a grocery budget and stick to it.
Sign up for Savings Apps
There are various round-up savings apps available that help save money. This is because these apps help save change that you usually waste.
To illustrate, it rounds up to the next dollar figure and takes it out of your bank account automatically. In addition, these apps often have features that help you keep an eye on spending habits, making it easier to create a savings plan.
Everyone needs help, and there are chances that you need it too. A financial coach will sit down with your financial documents, such as credit card statements and bank systems, to identify the areas you can use to save extra cash.
In addition, the coach can help with financial management and provide money-saving tips according to your current financial situation.
Use the Envelope Challenge
This is one of the latest trends on the block and is a promising way of saving money. To illustrate, you can start with envelopes for a week or a month. Some people also opt for a 100-day challenge.
Once you have the envelopes, start writing numbers on them, and put them into a basket. Then, you just need to draw one envelope each day and add the dollar bill of the written amount on the envelope. For instance, if you draw the envelope with the number 10 written on it, you have to add $10 to the basket.
The phone, Internet, and cable bills are inevitable, but you can save money on them. For this purpose, you need to call the service’s customer support and tell them that you don’t want their services anymore.
Once you do, they are likely to give you a discount to maintain their customers. Currently, only a few companies fall for this trick, but it never hurts to ask.
The second option is exploring other options and signing up for a different service provider. For instance, streaming services such as Hulu and Netflix are more affordable than cable, so make wiser decisions. Saving money through monthly bills is an effective way of reaching financial goals.
Save on Weekly Pay
If you are getting paid weekly or biweekly, you need to start saving the extra paycheck and putting it in your bank account (opt for a savings account). For instance, when a month ends with five weeks, you can save the fifth week’s paycheck to save up extra cash. In 2022, April, July, September, and December are the months with five weeks, so save up!
If you have multiple subscriptions, such as newspapers, magazines, Pandora, Netflix, Apple Music, Spotify, and games, it’s time to cancel them temporarily for three months. The money saved from these subscriptions should be put into your savings account to reach your financial goal.
Tax Amount Adjustments
Making more money is an obvious way of saving more money, and adjusting the tax amount from your paychecks helps make some extra cash. In most cases, people get returns at the end of the year, but you can change the plan to get returns monthly. However, it depends on your credit score, so check with the bank.
Cashback apps are a promising way of saving money on purchases. For instance, these apps can help save on online purchases, fuel, and groceries.
Make a Budget
Creating a budget and sticking to it seems overwhelming, but it’s a practical way of identifying spending habits. For this purpose, you can start tracking the monthly expenses for a few months to see where most of your money goes. Then, you can set up a realistic budget that helps save money by reducing the overall expenses.
Saving money is essential as it ensures you have funds for unexpected expenses, such as home repair, medical emergency, or car repairs. Knowing how to save $5,000 in three months can inculcate saving habits in you, which come in handy every step of the way!